Gary Johnson Says He Wants the Fair Tax; So What is the Fair Tax?

One of the biggest campaign proposals of Libertarian candidate Gary Johnson is the elimination of the income tax at both the personal and corporate level, abolishing the IRS, and replacing the tax system with the Fair Tax.

Most people in this country are not experts on the tax system. It is one of the most complicated elements that exist within our government and maneuvering through the pages of our tax code perplex the mind of anyone who dares to read it.

So what is the fair tax? How does this type of tax system work and fix the problems that we currently have in our country?

Watch these videos from Fairtax.org to get a basic understanding of a tax system that pledges to be fair to all people.

Jim, every flat (income) tax proposal has included a threshold below which the flat rate was not applied. Steve Forbes, Dick Armey both supported a flat 17% income tax rate but only on earnings above $35k for a family of four.

The FairTax effectively is the same… It is a simple flat rate sales tax applicable to all NEW goods and services purchased at retail in excess of poverty level of consumption…

The rebate is NOT a transfer program, but is a REFUND of overpayment, just like the current IRS refund is a return of an overpayment. The FairTax is only applicable to spending in excess of basic necessities, and basic necessities is defined as poverty level consumption.

Spend more than that level and you pay the sales tax. Spending below that level is refunded.

BTW – unlike Queen Clinton or Teflon Don’s tax proposals, the FairTax is an actual bill in congress that has actual cosponsors in the House & Senate… almost SEVEN DOZEN of them!

While the two major party candidates have their tax plans based in Fantasy Island… HR-25/S-155 are real legislative proposals in our federal legislature, and NEITHER party’s leadership has allowed the FairTax to ever escape committee because it isn’t in their best interest to destroy their power to dictate the winners and losers imposed by the current tax system. Allowing citizens to choose when, where and how much tax Is paid via their consumption choices would disembowel the RNC and DNC favorite tool to punish their enemies and reward their friends.

You said that the Fair Tax is one of the most complicated elements that exist within our government and this is posted to give a basic understanding. Although it might give you a basic overview of how it works, it only presents the facts that are most likely to increase its popularity. I would suggest visiting http://www.factcheck.org/2007/05/unspinning-the-fairtax/ to see both sides of the argument. For example, the prebate video seems misleading because it does not include the middle class which would see a higher effective tax rate.

Not sure how this helps the economy. Are we decreasing personal spending. And if so how does this help the economy. People will spend less so they don’t have to pay. Maybe that’s a little simplistic for the powers that be but that’s my take on it. Flat tax would force the rich to pay their fair share and not give them the opportunity to steal America blind. Stand up America and demand tax reform instead of making excuses for the rich to get richer.